Commercial solar power is a readily accessible option for many WA businesses who are eager to take more control of their electricity use and explore the potential commercial and environmental benefits of renewable energy.
According to Synergy Commercial SolarReturn Consultant, Sharon Pearl, WA businesses are in a unique position to take advantage of solar power.
“Here in WA, we have great conditions for solar power generation simply by being in one of the sunniest parts of the world,“ said Ms Pearl. “While around one in four Australian homes has solar panels, we’re now seeing more WA businesses tapping into the potential benefits of solar solutions too.”
The ROI of solar power for business
While the upfront cost of solar can be seen as an obstacle for some business budgets, the payback period or return on investment (ROI) is something every business should consider.
“At Synergy, we find many of our commercial solar enquiries start with customers asking when their system would be likely to pay for itself. The payback period for each business will depend on a range of factors including the system type and size, solar panel positioning, the cost of the system, electriciy plan and how much electricity a business tends to use during peak solar production times.”
“With a solar system tailored to the business's consumption habits, a business could typically expect to see a return on their investment within three to four years of installation” said Ms Pearl. “Once the system has paid for itself in electricity cost-savings, businesses are able to redirect those ongoing savings into other areas of the business.”
The right solution makes a difference
According to Ms Pearl, each business has a unique energy usage profile, so it’s crucial to get the right sized system and a tailored solution for the best results.
“It’s not a case of bigger being better. We let our customers know that a solar system that’s larger than your business needs won’t give you the return on investment you’re likely to be looking for. Oversizing will generally mean that your business is simply exporting more to the grid, with very little offset of their actual electricity consumption.”
“Synergy is able to give a business an estimated payback period based on the solar solution recommend and the business's historic electricity consumption habits.”
ROI can also depend on an existing business plan
Before a business invests in solar, Synergy’s Commercial SolarReturn Consultants work with customers to understand their existing electricity consumption and costs. A company or organisation’s electricity plan is an important factor to consider when estimating the likely solar payback period.
“Knowing how much you’re paying per kilowatt hour is crucial,” said Ms Pearl. “For example, if your business pays a higher rate during peak time and a lower rate during off peak times your overall costs for the year may be lower than if you were on a flat rate Tariff plan, this could then increase your payback period. Or if your electricity plan involves a minimum percentage amount requirement and you are charged for that minimum amount of electricity regardless of whether you consume it, installing a solar system may not reduce your electricity costs for some time.” This is where Synergy works with our customers especially when looking at a Solar solution by not having a minimum requirement so we can get you a quicker return on investment.
“We look at the electricity plan and historic consumption data, the unique metropolitan or regional location, building design and facilities, and the specific way each particular business uses electricity. We then recommend the most suitable solution to match our customers’ needs based on those factors.”
Buyer beware: Choose a reputable solar supplier
With a number of companies offering solar solutions, it’s important to choose a reputable provider with commercial experience. Be aware of any party that suggests installing solar panels will generate enough electricity for you to stop drawing power from the grid entirely.
“It’s a common misconception that installing a solar system leads to a $0 electricity bill or allows a business to disconnect from the grid” she said. “The reality is that solar panels only generate energy when the sun is out and daily supply charges apply. When the system isn't generating, unless you are drawing from a battery, grid-based electricity is required.”
Explore whether any incentives might apply
When weighing the cost of investing in solar, decision-makers within a business should also consider whether any initiatives such as the Federal Government’s Instant Asset Write Off scheme may assist.
“The Instant Asset Write Off scheme could help with the cost, or part of the cost, of a commercial solar PV system. We strongly recommend that businesses speak with their registered tax agent to obtain professional advice whether they may be eligible as it depends on a number of factors.”
“Some local councils and small business authorities may also offer small businesses grants to encourage investment in sustainability measures, including solar power. It could be worth checking with your local government or business advisory group to find out if they have any grants or incentives available for solar investment.”
Stepping into WA’s intelligent energy future
As WA’s energy landscape continues to evolve, Synergy is working to help commercial customers discover tailored and more energy-efficient solar solutions to suit their needs.
“You can speak to our Commercial SolarReturn team for help to find the most suitable solar solution for your business,” Ms Pearl said.
Synergy has partnered with many local Perth businesses across a range of industries including Coventry Markets, Morish Nuts and State Swim to provide high quality, low-maintenance commercial solar solutions designed for each business. For more information visit the website or call on 1800 453 021.
